Gift deeds are common and are frequently used between family members, friends and acquaintances.They are only termed gift when the recipient is not offering any form of compensation for the deed that they are receiving.For the donor to give the deed, they must be the legal owner of the property, and in the present.Notarization usually takes place, and for the signing of the deed to take place there has to be two witnesses present.
Its particularly important to ensure that the two witnesses do not have any interest in the piece of property that is being gifted. Once the signatures are put down, completing name change on property deed title, the transfer of ownership is complete, and the recipient can claim legal ownership, should there be any issue arising after the gift deed has been formalized. However, if there is a guardian or a parent present, they can accept the gift deed for the minor, until they come of age. This implies that the donor has every intention of transferring the ownership of the property, but at a future day. Its termed revocable because the donor may at any one time, refuse to give the deed. Complexities in giving a gift deed for property The process of giving a gift deed is not without its fair share of complications in term of legality, forms and documents of deeds involved. Gift Deed Format Registration Does NotIf registration does not take place, the recipient may have a harder time contesting for ownership in a court of law. Gift Deed Format Full Rights OnGift deeds are offered when the donor has full rights on the property. This is to say that they are the sole owners of the property, and have a direct control of what happens to the property. Thats because in shared tenancy, theres survivorship clause that legally transfers ownership to one party, should the other one meet an untimely demise. Then theres the issue of gift deed tax, which is a little more difficult. Their legal input is necessary to ensure that the recipient of the gifts does not run into any legal fixes because of an issue that was not previously addressed.
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